Lobbying for the top post of regulatoty agency AERA

Nirbhay Kumar, ET BureauJan 27, 2009, 09.02pm IST

NEW DELHI: Air India chairman & managing director Raghu Menon, its former former CMD V Thulasidas and former Airport Authority of India (AAI) chairman K Ramalingam are in the fray for the top post in the Airport Economic Regulatory Authority (AERA). The proposed regulatory agency is expected to start functioning in the next few months.

"Former civil aviation secretary Ajay Prasad has also met aviation minister Praful Patel to explore the possibility of becoming the chairman of AERA," an official in the aviation ministry said. But Mr Prasad is yet to submit his application, he said, requesting anonymity.

A few months back, AERA was notified in the gazette. As per the top aviation ministry officials the regulator is expected to be in place by March this year. Once the much-awaited airport regulator becomes operational, Indian airports will have a tariff regulator in line with international practices.

"Former secretary in the ministry of new and renewable energy V Subramanian and department of consumer affairs secretary Yashwant Bhave have also submitted their applications for the AERA chairman," he said.

The proposed regulator is expected to create a level-playing field and provide healthy competition between airports besides encouraging investment in airport facilities. The authority would also regulate fares and protect passenger interests. At present, the regulatory role for the airport sector is played by AAI.

Mr Patel is likely to take a final call on selection of the right candidate for the AERA chairman and two members once he returns from Davos after attending the annual World Economic Forum (WEF), he said.

The proposed regulator will be vested with the power to penalise any government agency, airport authorities and airline operators for failing to comply with its orders and directions.